Section 1 Flashcards
Reporting to the legal system or courts as means of settling a dispute.
Litigation
Settlement of a potential claim by an impartial panel of knowledgeable experts.
Arbitration
When a design professional acts in good faith on behalf of a client, such professional would establish a reasonable assumption of liability in proportion to their fee. In order to use this concept, it should appear in the design contract.
Limitation of lability
A meeting between parties in a disputes which is facilitated by an impartial third party. The mediator attempts to get the parties to a mutual resolution, but has no power to make an enforceable decision.
Mediation
The most basic type of commercial insurance and is limited to liability claims of bodily injury or property damage. Coverage is provided for accidents at your place of. Uisnrss or at your customers location.
General liability
Protects against loss from a claim of alleged negligent acts, errors or omissions in the performance of professional services. This might include loss of client data, claims of non-performance, or negligence.
Professional liability insurance (errors and omissions insurance)
Required by regulation in most states when a business has w2 employees. It provides medical and disability coverage for on-the-job injuries or work related illness.
Workers compensation insurance
Provides coverage when an employee steals money, equipment or other assets from a firm or its clients.
Fidelity or commercial dishonesty bond
Covers allegations of discrimination, wrongful termination and sexual harassment of employees.
Employment practices liability insurance
Circumstance that is beyond the control of one of the parties to a contract and which may, according to the terms and conditions, relieve that party of liability for failing to exicute the contract. Act of God
Force majeure
Assures that the contractor will agree to the contract if his proposal is accepted. If he does not, the bond is forfeited to the owner. The form states the amount of the bond and is signed and sealed by both a responsible officer of the contracting firm and a responsible officer of the security firm. 5-10%
Bid bond
The contract for the work. This document usually is a reference which points to various sections of the general conditions and contract documents which control different aspects of the work.
Agreement
Assures that the contractor will complete the work in conformance with the contract requirements. As for the bid bond.
Performance bond
Assures that the contractor(or the insurer) will pay their subcontractors and materials suppliers and that the owner will not be heard responsible for contractor default. As for the bid bond.
Payment bond
Certified that the contractor has adequate workers compensation, general liability, owners protective liability and auto insurance.
Certificate of insurance
A brief description of the project and timetable for the bid period. Usually describes:
Where to obtain the contract documents.
Fees and documents to be submitted with the bid including fees for document sets, bid security, bonding requirements, wage rate information, and eeo ( equal employment opportunity) requirements.
Invitation to bid
Detailed requirements for the bidders.
Instructions to bidders
Forms to be filled out and submitted by the contractor which lists the base bid price, any alternatives(additive or deductive) and the price for each, provisions for additional work (usually unit price for over excavation of unuseable material and replacement with compacted fill), signatures and certifications by the officers of the contractor.
Bid form
Where union labor requirements are in effect. These comprise an extensive list of trades and the prevailing union wage for each trade in the area where the project is located.
Prevailing wage rates
Changes in the contract documents that are issued during the bid period. These are issued by the owner in writing, usually up to 5 days prior to the bid opening. Often they occur due to questions that arise during bidding due to contractor inquiries.
Addenda
Adjustment in the contract price by agreement of the contractor and owner. Agreed prices do not apply to items where stipulated or contract unit prices have already been set.
Agreed price
Set out in detail the requirements for execution of the work. Sets out in detail the legal requirements of all parties to the contract(the owner, contractor, and designer)
Standard general conditions
This is a section which includes changes or amendments to the language of certain parts of the standard general conditions which are specific to a particular unit of government such as the state department of transportation or a county government. The section simply outlines the words to be removed from the standard conditions and gives the words to be inserted in their place.
Supplemental general conditions
An estimated cash amount allocated to items that have not yet been designed, detailed or selected(example:lighting fixtures) prior to bidding.
Allowance
Optional adjustments in the scope of work which are issued with the bid documents. These adjustments either increase the scope and the contract price (additive alternatives), reduce the scope and the contract price(deductive alternatives), or provide for substitutes for some item in the base bid which may increase or decrease the contract price.
Alternatives
The price proposed to complete the basic work of the project, exclusive of alternates and extra work.
Base bid
Collectively the construction drawings , technical specifications, general specifications and bidding forms and instructions.
Contract documents
A unit price stated on the bid form by the contractor that is the amount he will charge for that item.
Contract unit price
A document issued by the owner to the contractor giving him notice that the bid has been awarded to him.
Notice of award
A meeting held, usually at the project site, generally a week after the beginning of the bid period. This is an opportunity for the contractors to walk the site and ask questions of the designer.
Pre-bid conference
A unit price stated in the contract documents (usually on the bid form) by the owner that is the amount that will be paid for that item.
Stipulated unit price
Any type of bond issued by an insurance or bonding company which assumes financial liability in case of contractor breach of contract.
Surety bond
A price per measured unit of some work item.
Unit price
A process for scheduling a set of project activities first developed in the 1950’s for the us military. It is an important tool for effective project management.
The critical path method
A graph of tasks and timelines. Cpm technology
Gantt chart
A diagram of milestones and timelines.
PERT chart
A civil wrong for which a court will grant a remedy. This suggests that if someone has suffered damage, then someone else will be at fault.
A tort
Misrepresentation of facts, deceit, and defamation of character.
Intentional tort
Generally deal with issues of negligence. Of considerable concern to design professionals.
Unintentional tort
The failure to exercise the care that a prudent person usually exercises.
Negligence
All persons who owe duty to others to conduct themselves with a reasonable care that a reasonable person with similar skills and knowledge would do in similar circumstances. One of four concepts of negligence.
Duty of care
There are two types of duties of care which effect most design professionals.
___ Employers are liable for the acts of their employees while the latter are performing within the scope of their employment duties.
___ volunteer and free services carry the same responsibility as services solicited for a fee
- Doctrine of respondent superior
2. Doctrine of gratuitous service.
Employers are liable for the acts of their employees while the latter are performing within the scope of their employment duties.
Doctrine of respondent superior
Volunteer and free services carry the same responsibility as services solicited for a fee.
Doctrine of gratuitous service
Occurs in two ways: affirmative acts and failure to act
Breach of duty
Giving incorrect advice or issuing drawings or specifications which result in damage
Affirmative acts
Failing to provide necessary advice, or omission of a drawing or specification that results in damage.
Failure to act(errors and omissions)
To prove negligence, a connection between breach of duty and damage must be shown.
Causal connection
Compensatory, consequential, liquidated, and injunctions are all forms of what?
Damages
Compensation to put both parties in the same position they would be in if the contract had been performed.
Compensatory damages
Damages arising out of circumstances known(or that should have been foreseen) by one party to the contract at the time the agreement was made
Consequential damages
Damaged agreed to in the contract in the event of a breach or default by one party
Liquidated damages
Orders issued by a judge which prohibit a person from performing a specific activity
Injunctions
“Let the buyer beware”
Caveat emptor
The legal doctrine that wrongdoers should pay damages proportional to their fault
Comparative negligence
A promise to hold a person harmless from liability or loss
Indemnity
A construction defect that is not perceptible by ordinary observation
Latent defect
A document recorded in the county recorders office that gives public notification of litigation involving title to or the possession of real property
Lis pendens
An order issued by a design consultant based on (usually) a field observation. Usually accompanied by a disclaimer statement that contractor will act without change in contract price or schedule unless he notifies the in writing architect prior to acting on the instruction.
ASI (architects supplemental instruction)
A significant change to the contract documents during construction that may change the scope of work, time to complete the work, or the contract price.
Change order
Work requiring a change order should not be performed until after the paperwork is completed and price agreed by the contractor and owner.
Work occurring on or adjacent to the project site which may require coordination with other contractors or entities.
Collateral work
A document that contains a complete description of change in the work. It also designates the method to be followed to determine change in the contract sum or contract time(note: contractor and owner have not agreed on a price and time adjustment) the contractors responsibility includes maintaining detailed records on time and material basis of work required by ___. After completion of the change, the contractor must submit an itemized account and supporting data necessary to substantiate cost and adjustments to the contract.
Construction Change Directive
A regular tabulation by project designer which maintains a record of the number of working days remaining in the contract period.
Contract Time Accounting
Work that is not included as part of the contract price.
Extra Work
Extra work often arises due to the discovery of unforeseen hidden conditions or changes to the contract caused by actions of the owner, or required due to incomplete construction documents.
A monetary claim assessed against the contractor by the owner for each working day past the stipulated completion of the project.
Liquidated Damages
A minor change in the work, which does not change the price or schedule of the contract, which can be ordered by the landscape architect without prior written authorization through the change order process. Later written documentation of the change should be provided.
Field Order
A payment method used for extra work when the contractor and owner cannot agree on a price for extra work. Force account payments cover labor, materials, equipment, administration, general superintendency, additional bond and other overhead expenses.
Force Account Work
Claims against the contractor, which are transferable to owner for materials and services not paid for by contractor.
Mechanic Liens
Mechanics liens are usually brought against the contractor by the subcontractors or materials suppliers.
A document issued by the owner to the contractor giving him a date by which he should begin construction. This sets the beginning of the contract period.
Notice to Proceed
A formal notice from the contractor for payment for work completed or material ordered and delivered. It is the designers responsibility to verify that said work has been performed satisfactorily and that the amount requested is in line with the overall percentages of the total construction contract.
Payment Request
A regular report to the designer by the contractor and to the owner and by the designer which outlines the current completion status of the project and specific portions of the work. __ are often a significant part of the basis for progress payments to the contractor.
Progress Report
A document prepared by the designer after the final inspection once the contractor has notified the designer that he has completed the work. (Note: the AIA and CSI currently say that __should be prepared by the contractor) the __ , usually fairly minor, which must be completed before the designer will authorize release of the retainage and the owner will accept work from the contractor. The designer must verify that the items on the __ have been completed prior to authorizing the final payment to the contractor.
Punch List
A document submitted by the general contractor to the prime designer requesting clarification of the intent of a drawing or specification; or requesting a decision on an unforeseen condition discovered in the field.
Request for Information (RFI)
A percentage of the payments to the contractor which is held in escrow by the owner until after final acceptance of the project. This usually amounts to %10 of the value of the completed work.
Retainage
Detailed measured drawings provided by the contractor or his suppliers which indicate means of placement, fabrication, attachment, finish, or other aspects of some item. Often used where the contractor is given latitude as to method of construction.
Shop Drawings
Any item which must be submitted to the owners representative (usually the designer) for approval. Shop drawings, mock-ups, product samples, product literature, and test results are all examples of possible __.
Submittals
A type of change order issued when time does not permit the changes in price and schedule to be negotiated between the parties to the contract. The changes to price and schedule are estimated by the owner. Contractor is required to proceed immediately on order based in owners estimate, but may file, in accordance with provisions of the contract, a claim for the difference in actual cost and the owners estimate.
Unilateral Change Order
Generally any day other than weekends, normal holidays, or days when weather conditions prevent normal construction practices.
Working Day
